Why is everyone still obsessed with MF PE when Private Credit exists?
Everyone kills themselves to get into Apollo/KKR PE, but looking at the Private Credit shops (Ares, HPS, Golub)... the hours are better (60h vs 90h), cash comp is nearly identical at the junior levels, and the carry seems safer in this rate environment. Why is PC still treated like the 'backup' option? The risk/reward seems way better.
The lifestyle is better because the work is fundamentally different.
In PE, you are selling a growth story. In PC, you are looking for the 1% chance the company implodes. It's quite a pessimistic, downside-focused existence imo.
A lot of guys lateral to PC for the hours and realize 6 months later they are bored to tears reading credit agreements and arguing about covenants. Make sure you actually like the work not just the wlb
In addition to the difference in the work itself, the comp (carry) potential is greater in PE than PC. PC structurally generates lower returns (via less risk), receives lower performance fee rates (via lower returns), and carry is taxed at higher rates (interest-returns instead of capital gains).
Ad voluptas tempora dolores quaerat voluptas porro. Est dolor sit nihil impedit delectus sit odit. Quia voluptates maiores ut quisquam. Natus expedita blanditiis qui possimus.
Ipsum tenetur eos expedita placeat quo. Quaerat ratione ea saepe non dolore. Autem consectetur omnis quia.
Sit facilis voluptatibus doloremque omnis. Eveniet temporibus cum non ipsam. Mollitia consequatur harum quas non quidem veritatis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...